FourWinds Logistics—Fraud Scheme Allegations

FourWinds, a San Antonio company which traded sand used in fracking to extract oil and gas from shale rock, allegedly orchestrated a fraud scheme to defraud investors, according to Documents from U.S. District Court currently under review by attorneys Jason Kane and James Booker.

The aforementioned Court Documents go into detail to describe the alleged participants in the case, and also allege that Eric Nelson, former e-commerce and marketing director, pleaded guilty to allegedly made changes to a bank statement in order to make it look that the company had more money than it actually did.

Eric Nelson was also accused of allegedly altering a bank statement “to reflect a grossly inflated account balance,” according to Court Documents from Texas.

The following bank statements were then allegedly sent via e-mail to prospective investors, charging Documents report.

Nelson could purportedly face up to five years in prison, a fine of as much as $250,000 and up to three years of supervised release, said Documents report.

What is more, FourWinds Logistics’ former marketing director also pleaded guilty for his purported role in an alleged fraud scheme to defraud investors, according to the aforementioned Documents from U.S. District Court.

The FourWinds case also involves Texas State Senator Carlos Uresti, who allegedly provided legal services to FourWinds, said Documents note.

The now-bankrupt company, which traded frac sand, had allegedly retained Sen. Carlos Uresti who allegedly served as its auxiliary general counsel for a limited time in late 2014, the Documents note.

Uresti has allegedly admitted that he has heard from the FBI that he has been named as a “witness” in an investigation of FourWinds and its CEO Stan Bates, who has been accused by investors of allegedly spending their cash on personal expenses, the Documents report.

State Sen. Carlos Uresti allegedly held associations to FourWinds, and even purportedly held an ownership stake and served as general counsel for four or five months in late 2014, said Documents report.

What is more, Uresti also allegedly took in a commission in exchange for taking in a former legal client to invest with FourWinds, the Documents further allege, with said former client eventually almost losing about $800,000.

Finally, Uresti also was an owner of shares in the company and took in a $40,000 loan that he at first allegedly failed to report on a financial disclosure form filed with the state, the Documents go on to allege.

The Peiffer Wolf Carr & Kane securities lawyers are currently investigating FourWinds’ alleged fraud scheme and are focused on any agents that may have approached investors to recruit them to invest in FourWinds.

FourWinds Allegedly Photoshopped Bank Statements to Show More Money but Purportedly Eventually went Bankrupt with Creditors Allegedly Looking for as Much as $14 Million

Executives at FourWinds, which fell to bankruptcy in August 2015, allegedly pleaded guilty to photoshopping bank statements which made it look like the firm had more cash than in reality, according to to Documents from U.S. District Court presently being examined by attorneys Jason Kane and James Booker.

Reports from Texas further all allege that the firm is into creditors for more than $14 million whilst investors claim to have been defrauded, said Documents report.

As more details emerge in the case, we find that Shannon Smith, FourWinds co-owner and its former chief operating officer, purportedly pleaded guilty to a single felony count of alleged conspiracy to commit wire fraud, and thus making him the second FourWinds official to plead guilty in connection with the case.

Then there is Laura Jacobs, FourWinds ex-comptroller.

Jacobs allegedly is looking at a criminal case which is similar to Nelson’s, and she faces up to five years in prison, the Documents note.

Many investors have also made accusations that former CEO Stan Bates allegedly spent investor money on personal expenses, expensive gifts, exotic car rentals and vacations, the Documents note.

Securities Lawyers Investigating

The Peiffer Wolf Carr & Kane securities lawyers often represent investors who lose money as a result of alleged fraud schemes and are currently investigating FourWinds’ alleged fraud scheme and are focused on any agents that may have approached investors to recruit them to invest in FourWinds. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of FourWinds’ alleged fraud scheme may contact the securities lawyers at Peiffer Wolf Carr & Kane, Jason Kane or James Booker, for a free no-obligation evaluation of their recovery options, at (585) 310-5140 or via e-mail at arosca@prwlegal.com or jbooker@prwlegal.com.

In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.

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